Circular No. 97/2016/TT-BTC guides on the documentation and procedures for exempting individual income tax for Vietnamese individuals working at representative offices of international organizations under the United Nations system in Vietnam.

CIRCULAR

GUIDELINES ON DOCUMENTS AND PROCEDURES FOR EXEMPTING PERSONAL INCOME TAX FOR VIETNAMESE INDIVIDUALS WORKING AT THE REPRESENTATIVE OFFICES OF INTERNATIONAL ORGANIZATIONS UNDER THE UNITED NATIONS SYSTEM IN VIETNAM

On the basis of LAW ON PERSONAL INCOME TAX NO. 04/2007/QH12 dated November 21, 2007; AMENDMENT AND SUPPLEMENT TO CERTAIN ARTICLES OF THE LAW ON PERSONAL INCOME TAX NO. 26/2012/QH13 dated November 22, 2012 and Government Decrees detailing its implementation;

On the basis of LAW ON TAX ADMINISTRATION NO. 78/2006/QH11 dated November 29, 2006; AMENDMENT AND SUPPLEMENT TO CERTAIN ARTICLES OF THE LAW ON TAX ADMINISTRATION NO. 21/2012/QH13 dated November 20, 2012 and Government Decrees detailing its implementation;

On the basis of AMENDMENT AND SUPPLEMENT TO CERTAIN ARTICLES OF VARIOUS TAX LAWS NO. 71/2014/QH13 dated November 26, 2014 and Government Decree 12/2015/NĐ-CP detailing its implementation;

On the basis of REGULATION ON PRIVILEGES AND IMMUNITIES FOR FOREIGN DIPLOMATIC MISSIONS, FOREIGN CONSULAR POSTS, AND REPRESENTATIVE OFFICES OF INTERNATIONAL ORGANIZATIONS IN VIETNAM dated August 23, 1993;

Decree No. 215/2013/NĐ-CP dated December 23, 2013 of the Government on the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Pursuant to Decision No. DECISION 07/2016/QĐ-TTg dated February 22, 2016 of the Prime Minister on exempting personal income tax for Vietnamese individuals working at the representative offices of international organizations under the United Nations system in Vietnam;

At the proposal of the Director General of the State Revenue Administration,

The Minister of Finance provides guidance on the documents and procedures for exempting personal income tax for Vietnamese individuals are who are Vietnamese areworking at the representative offices of organization international organizations under the United Nations system in Vietnam as follows:

Article 1. Scope of Regulation and Applicability

1. This Circular guides the documents and procedures for exempting personal income tax for Vietnamese individuals working at the representative offices of international organizations under the United Nations system in Vietnam.

2. This Circular applies to Vietnamese individuals working at the representative offices of international organizations under the United Nations system in Vietnam who are exempted from personal income tax according to Decision No. 07/2016/QĐ-TTg dated February 22, 2016 of the Prime Minister on exempting personal income tax for Vietnamese individuals working at the representative offices of international organizations under the United Nations system in Vietnam (hereinafter referred to collectively as Vietnamese Staff).

Article 2. Documents and Procedures for Exemption

1. Exemption Documents

1.1. Exemption documents include:

- A letter of introduction from the representative office of the international organization under the United Nations system in Vietnam, accompanied by a list of Vietnamese Staff exempted from personal income tax (according to Form No. 01/DSMT-LHQ annexed to this Circular).

- A copy of the Labor Contract.

1.2. Exemption documents for cases involving changes in Vietnamese Staff due to new recruitment or termination of contracts include:

- A letter of introduction from the representative office of the international organization under the United Nations system in Vietnam, accompanied by a list of changes in Vietnamese Staff exempted from personal income tax (according to Form No. 02/TĐDSMT-LHQ annexed to this Circular);

- A copy of the Labor Contract (for newly recruited Vietnamese Staff).

1.3. Exemption documents shall be prepared in two copies.

2. Deadline for Submitting Exemption Documents

2.1. International organizations under the United Nations system that establish representative offices in Vietnam must submit exemption documents within thirty days from the date when the head of the organization presents the Letter of Credence to the competent authority of Vietnam.

2.2. International organizations under the United Nations system that have established representative offices in Vietnam before the effective date of this Circular, if they have not yet submitted exemption documents for personal income tax, must submit such documents within thirty days from the effective date of this Circular.

2.3. In cases where the representative office of an international organization under the United Nations system recruits new staff or terminates labor contracts with Vietnamese Staff, it must submit exemption documents for changed Vietnamese Staff no later than the twentieth day of the month following the month in which the change occurred.

3. Place for Submitting Exemption Documents

The representative office of an international organization under the United Nations system must submit exemption documents to the Ministry of Foreign Affairs (National Protocol Department).

4. Exemption Procedure

The Ministry of Foreign Affairs (National Protocol Department) is responsible for reviewing, confirming, and sending the list of Vietnamese Staff exempted from personal income tax (according to Form No. 01/DSMT-LHQ annexed to this Circular) or the list of changes in Vietnamese Staff exempted from personal income tax (according to Form No. 02/TĐDSMT-LHQ annexed to this Circular) to the Provincial Tax Department where the representative office of the international organization under the United Nations system is located, to complete the exemption procedure, within five working days from the date of receipt of all exemption documents.

Article 5. Effective Date

This Circular takes effect from August 15, 2016 and replaces Circular No. 57/2009/TT-BTC dated March 24, 2009 of the Ministry of Finance guiding the exemption of personal income tax for Vietnamese individuals working at the representative offices of United Nations organizations in Vietnam.

During the implementation process, if there are any difficulties, please promptly report them to the Ministry of Finance (Total Tax Administration) for research and resolution./.